Nucor Case Analysis :: Finance Business Essays

Nucor Case analysisCase summary Nucor is the worlds largest recycler, recycling over 10 million tons of scrap mark annually. Nucor descended from auto manufacturer ransom E. Olds, who founded Oldsmobile. The party evolved into the nuclear Corporation of America, which was involved in the nuclear creature and electronics business in the 50s and early 60s. oer the next five age, Valley Sheet Metal, Vulcraft Corporation and U.S. Semi-conductor Products joined the Nuclear Corporation. After suffering several money-losing years, in 1964 F. Kenneth Iverson was installed as president. Management then decided to integrate backwards into marque making, and in 1972 they adopted the reach Nucor. Since then Nucor has established itself as a leader in the sword industry through efficiency and innovation. It now employs more(prenominal) than 7,000 people planetary and has experienced tremendous growth under its new CEO Daniel R. DiMicco. fancy up compend Strengths Low Cost Producer Employee/Managerial Relations pencil lead Innovator Low Debt Load Overall industry leader Weaknesses dependance on scrap alloy Company Profile - Nucor Corporation is the largest steel producer in the United States and had net sales of $11.3 billion in 2004.-Nucors origins are with auto manufacturer Ransom E. Olds, who founded Oldsmobile and then Reo Motor Cars.-The shake-up resulted in restructuring and eliminating money-losing businesses which left only the steel joist business called Vulcraft-Vulcraft operated in Florence, southernmost Carolina and Norfolk, Nebraska-Management then decided to integrate backwards into steelmaking by create its first steel mill in Darlington, South Carolina in 1968-In 1972 the company adopted the name Nucor Corporation-By 1985 Nucor was the seventh largest steel companySituational AnalysisGeneral External EnvironmentSociocultural- Nonunion workers got paid more than 85% of the states they worked in-Recycled more than 10 millions tons of scr ap metal annuallyTechnological-Began using a twin shell voltaic furnace to increase production and lower costs and increase market destiny-Developed and implemented strip casting overseas to eliminate a musical note in the steel making processDemographic-Economic slow consume in early 90s led to a lessen demand for steel-By 1995 the steel industry was the best it was for 20 yearsEconomic-Import values decreased for all steel products from 1998 to 1999-U.S. steel producers approach higher energy costsGlobal-Increasingly tough environmental rules-Cheaper imports for steelIndustry Analysis Nucor has established itself as a leader in the steel industry through efficiency and innovation.Industry Driving Forces of miscellanyIncreased demand on a global scale overdue to increase in manufacturing across the world, opposite in U.